Visa and Discovery Bank Reveal How South Africans Spend in 2024

Visa  and Discovery Bank  have just released SpendTrend25 , the third and most detailed edition of their annual collaborative research series that analyses local and global consumer spending trends. The report tracks five years of spending data to reveal how financial behaviour is shifting across the country.

SpendTrend25 reveals how South Africans are spending – and adapting

In 2024, even with inflation easing, people were still under pressure – with high interest rates, rising costs, and tighter budgets slowing down spending. More South Africans are going digital, shopping online, and using loyalty programmes to get more value. SpendTrend25 unpacks these trends – offering fresh, data-driven insights that matter for everyone, from everyday consumers to businesses and banks.

Key findings from SpendTrend25:

1. Spending is muted, despite easing inflation.
   Although inflation has eased, consumer spending has slowed due to high interest rates, with consumer spending trailing inflation by 5% points.
2. Consumers are using their long-term savings for short-term expenses.
   During this period, the cost of living remained high, as consumers sought out alternatives to ease these financial pressures, such as relying on credit facilities and withdrawing from their two-pot retirement savings.
3. Groceries, retail, travel, eating out, and fuel together account for over 70% of total spending.
   Groceries remain the largest spending category for mass market, mass affluent, and everyday affluent consumers in South Africa, while high net worth individuals dedicate more of their share of spend to retail and travel.
4. Busy lifestyles and the need for convenience are influencing spending more.
   South Africans average eating out and takeout spend growth is outpacing grocery spend growth. This shift towards convenience still allows consumers to prioritise healthy food choices.
5. Locals are becoming more confident in making digital payments and online purchases.
   The use of digital wallets for in-store purchases has continued to rise, along with online spending, with consumers’ trust in their banks growing.
6. South Africans are travelling less internationally.
   Growth in travel spend per active card slowed but locals are now purchasing more online from international platforms.
7. Omni-channel shopping experiences continue to grow.
   Many consumers are embracing phygital shopping experiences, like ordering online and collecting in-store, or checking product availability online before buying at a store.
8. The reliance on cash is slowly declining.
   Digital payments also continue to grow the demand for real-time payments. Consumers now seek immediate payment options at an affordable price point.
9. Online entertainment continues to surge.
   Spending on online entertainment is the fastest-growing category in South Africa, covering areas like streaming, sports betting, and event bookings.
10. Subscription services have diversified.
    These services now include areas like artificial intelligence, sports bookings, groceries and e-commerce.

Insights into what South Africans want

This year’s report is also supported by original survey research commissioned by Visa and Discovery Bank. The survey, conducted among 1,000 South African cardholders, reveals:

• Consumers still use cash– mainly due to familiarity and budgeting needs.
• Digital awareness is high, but safety and trust remain key concerns.
• Multi-banked behaviour is rising, with strategic card use depending on loyalty benefits.
• Subscription spend is diversifying, expanding beyond video streaming into AI, groceries, and event access.
• AI-driven financial advice is gaining popularity– especially tools that help people budget smarter.